The story comes to us from Portugal, near Braga where a real estate sale recently allowed a buyer to pay for his property in BTC. No need to go through fiat currency transfer. If the example is still isolated today, it may inspire dynamics in the coming years.
An operation carried out by the Order of Portuguese Notaries!
Thus Eldorado follows crypto in Europe, Portugal promoting digital assets to attract investors from all over the world. Advantageous taxation With a lack of taxation on capital gains, facilitating the use of digital assets as a means of payment, the reforms are well underway to attract cryptocurrencies from all over the world.
In this favorable context for digital assets, the notary Salazar country has recently introduced new provisions for transactions carried out using digital assets. For the past few weeks, it has become possible to buy real estate by paying for it in cryptocurrencies. No need to go through fiat currency conversion like euro or dollar.
It is this new regulation that has allowed Lusitano buyer to get an apartment in the city of Braga. In exchange for 3 BTC. Sales with significant help from local real estate actor Zome who are thrilled with this first one:
This act is a historic step in converting a digital asset into a physical asset – a house – without any conversion into euro.
European Union regulations could change everything!
Since the beginning of the Ukraine crisis, the political will of the authorities to control digital assets has been further strengthened. It could also jeopardize Portuguese regulations. But for that, the member states still have to agree on a common regulations. A regulation which would then take precedence over the various national laws.
Anyway, for this operation, obviously the buyer had to show his credentials. In particular, by providing explanations and documents validating the origin of the funds. Proof of transfer was also required to complete the sale between the buyer’s portfolio and the seller’s portfolio.
Crypto volatility is always a major obstacle!
Investment in stone is often presented as a good father placement. So it’s hard to imagine doing business with assets as volatile as cryptocurrencies.
To generalize this example, it therefore seems necessary for the crypto market to first reach a certain type of maturity. Prerequisite with the decrease in volatility. If many digital assets are seen as the payment method of tomorrow, the nature of the goods is also crucial for the use of these payment methods. It is clear that the risks of buying a loaf of bread or flat in Bitcoin are not the same.
Be that as it may, for many observers, it is the multiplication of the use of digital assets as a means of payment that will enable cryptocurrencies to be fully democratized. And play favorably on the valuation of the market. First, it is a safe bet that such an initiative will remain marginal.
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